1031 is ridiculously huge too. The NSA probably works on EB scales, which is “only” 1018 bytes. If you can get up to 1022 equally likely passwords you’re fine against dragnet, brute force-style attacks. (If you’re zombie Bin Laden and the NSA will stop for a whole year cracking your drive, and doesn’t have any shortcuts, maybe you need 1039 I guess)
That being said, if more characters is no problem, go ahead and do that. I’m not saying more security for free is a bad thing.
So normal life, except all the non-human things become unchanging?
The economy is sure as hell going to be different in a hurry. Pretty much only service industries will survive, because anything else gets reset tomorrow. In a way this will be great, because people will be just as well supplied anyway, so it will give room to pursue personal development in earnest. Or maybe we’ll find a new way to fuck ourselves.